The Order Defect Rate (ODR) at Amazon is an indicator of how satisfied customers were with the shopping experience. ODR is an important factor in getting the buy box. ODR monitoring affects Amazon sellers who use Fulfillment by Merchant (FBM). Amazon is committed to providing the customer with a consistent and smooth shopping experience, which is why strict order defect rates apply.
Amazon defines the ODR as follows:
The rate of order defects (expressed as a percentage) is a key measure of whether customers had an excellent shopping experience when they made their purchase. This is the number of purchase orders with defects divided by the total number of purchase orders. The rate of order defects consists of 3 components:
- Rate of A-to-Z warranty claims
- Rate of negative feedback
- Rate of service refunds
The order defect rate should be less than 1%. If this Order Defect Rate is exceeded, the merchant loses the Buy Box.
With 100 orders and two bad reviews, the ODR is already 2% and exceeds the 1% target. Amazon reserves the right to remove products or block the seller account. If an Amazon merchant is blocked, he has 17 days to submit an action plan in which he explains in detail how he intends to comply with the order deficiency rate in the future. The order failure rate can be monitored through Seller Central under the “Customer Satisfaction” tab.
Prevention of order defects
The retailer has a great influence on the ODR. By providing multiple, high-quality product images, it is possible for the buyer to get a precise impression of the product. Detailed bullet points and a meaningful product description can highlight the features and specifications so that there is no misunderstanding with the customer and he doesn’t make an A-to-Z warranty claim. In order to prevent negative feedback, a fast and friendly customer service should be provided. The best solution for the customer should be the main focus.